LI man arrested in alleged Ponzi scheme

A Long Island financial planner is charged with scamming older investors in an alleged Ponzi scheme.

Steven Pagartanis of East Setauket was arrested Wednesday for allegedly stealing about $7.5 million that was supposed to be invested in a Canadian real estate development company, according to a statement from the Suffolk County District Attorney’s office.

Instead, Pagartanis allegedly used the money to pay back prior investors in the scheme and spent some of the money on personal expenses, according to the DA.

The four victims in the felony complaints, who began investing in the scheme as early as 2013, range in age from 64 to 83 years old.

Pagartanis, the owner of Setauket-based Omega Planning Associates, was arraigned in Suffolk County District Court in Central Islip and charged with four counts of grand larceny. He was released with GPS monitoring.

“The defendant described to victims a great investment they could make by trusting him with their hard-earned money,” Suffolk District Attorney Tim Sini said in the statement. “In some cases, victims gave the defendant their life savings. The defendant then used those monies to pay off earlier investors in his scheme and to fund his personal lifestyle.”

Pagartanis was barred from acting as a securities broker in April by the Financial Industry Regulatory Authority after a concurrent investigation. A civil lawsuit was also filed against Pagartanis by the U.S. Securities and Exchange Commission.

Pagartanis could not be reached for comment. A call to his firm was answered with a recorded message that said: “You have reached a number that is not currently set up to receive calls. Please try again later.”